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Soybeans drop to lowest price since July on better harvest news

Tuesday, October 2, 2012

Soybeans drop to lowest price since July on better harvest news

Chicago soybean prices fell to their lowest levels since July, while corn also dropped on news that the U.S. harvest is hurtling forward at its swiftest pace in more than three decades due to favorable weather, Bloomberg reports.

According to the media outlet, roughly 41 percent of soybeans in the U.S., which grew the most soybeans in 2011, had already been harvested as of September 30. This is compared with the 15 percent that had been harvested by this date last year, information from the U.S. Department of Agriculture shows. The data also indicate 54 percent of corn has been harvested, up from 18 percent last year.

"It’s more the pace of harvesting that’s pushing prices lower, as it eases supply concerns," Chung Yang Ker, an analyst at Phillip Futures Pte, told the news source. "There’s also the anticipation for larger-than-expected yields."

According to Agriculture.com, soybeans on the Chicago Board of Trade fell 1.9 percent, or 22 cents, on Tuesday, settling at $15.30 per bushel. The prices were affected by reports of improving yields in certain areas that were once thought to be ravaged by the recent drought.